Investor warning over Pi cryptocurrency

Some large international digital exchanges, such as Bitget, previously agreed to list Pi. However, an announcement on Bitget's website on February 14 proclaimed the platform's commitment to providing a secure and compliant trading environment.

"As requested by the Pi Network team, after the listing of Pi Network tokens, users from certain countries and regions will not be able to deposit or trade PI tokens. Services for users in other markets will remain unaffected, and existing trading rules will stay unchanged," Bitget announced.

"Cryptocurrencies are subject to high market risk and volatility, despite their high growth potential. Users are strongly advised to do their research as they invest at their own risk," the platform added.

While there is some optimism about the prospect of investing in Pi, many people are pessimistic. US-based Pi investor Maria Jones believes that many are simply waiting for the coin to be listed so they can sell it, but she expressed concern about who exactly will buy it. "A surge in sell-offs may lead to a shutdown of the platforms," she said on an investment forum.

Other investors are wondering how the value of Pi will be calculated. Tran Xuan Tung, a Pi investor in Hanoi asked, "If its developer releases millions or billions of more Pi coins, how would we manage this cryptocurrency, and what would be the legal status of Pi coins?"

The Vietnamese Ministry of Public Security worked with local police to investigate activities related to Pi cryptocurrency last June.

A representative of the ministry said that activities in Vietnam related to Pi show all the signs of a Ponzi scheme, that is, paying early investors with money from later investors, creating the illusion of profitability, but it is ultimately unsustainable and investors can incur heavy losses, similar to the multi-level marketing model.

"Potential investors should be cautious about putting money into any cryptocurrency, especially those that report high returns in a short period of time. Ponzi and multi-level marketing schemes pose many risks to participants. People should be vigilant with their money," said a deputy director of the AO5 Department, under the Ministry of Public Security.

Big risks for investors in digital assets At the Vietnam Tech Impact Summit 2024 on November 3, experts said that Vietnam was Asia's most attractive technology destination and a promising land for digital assets. However, there are also risks for investors.

Cryptocurrency is not banned in Vietnam: Ministry Cryptocurrency is not banned in Vietnam but it is necessary to develop a legal framework to ensure its on-track development and prevent risks, a representative from the Ministry of Justice has said.

Surge in cryptocurrency investment indicates multi-billion-dollar opportunity Hundreds of billions of dollars in cryptocurrencies are estimated to have flowed into Vietnam over the past year; however, the lack of a legal framework monitoring this capital flow might lead to tax losses and risks such as money laundering.

Clear regulations still required for crypto Bitcoin and cryptocurrency transactions are becoming common in Vietnam, yet legal frameworks have not kept pace.